This explanation is to demonstrate, not to those who know that Ponzi schemes are fraudulent, and attempt to cash out before its inevitable collapse (leaving later participants to lose everything), but to those who actually believe such a system is sustainable. Those who say things like "if these people hadn't been so greedy", "if the media hadn't scared everyone away", "if...", "if...", "if..." ONCE AGAIN, the intended audience of this lecture is not for those who understand the fraudulent and unsustainable nature of Ponzi schemes, but to educate those who do not.
In this very simplistic example, there are no referral bonuses, no one running away and stealing money from the system, no "media or government interference" affecting victim participant confidence. Most Ponzi schemes pretend to invest in some odd commodity, to give a plausible reason to investors for the growth of their investments. But in reality, the only monetary input comes from new investors. For this reason, it is IMPOSSIBLE to sustain indefinitely, as there is a FINITE number of humans on this planet. Even if newborn babies were recruited into the scheme as they were being born, the exponential growth of the debt incurred by paying old investors with the investments of new investors is impossible to keep up with.
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